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Has Your MLM Company’s Comp Plan Programmed You For Failure?

…Or Who Stole Your Bonus Check

mlm success

Who stole your bonus check?

A network marketing company wouldn’t want its people to fail, would it? Aren’t they about helping you succeed? Right about now you’re probably telling yourself about all the great training your company offers and all the great products they have, and all the money the upline is making, relieved you at least have dodged this particular bullet.

I can remember one of the first companies I joined…I was selling health products and I was also convinced that these products would save the world…or at least the health care system. OK, so I was a little naive. Of course I also wanted to get rich, that didn’t happen either. Eventually I dropped out swearing never again…until the next one came along, and the next one. Was I programmed to fail there? I certainly didn’t get a straight story, but of course I didn’t do my homework either. I attended meetings heard testimonials and blinded by the stars in my eyes I never once considered reading, let alone understanding, the comp plan. I just figured with all the great products the world would join me….talk about naive.

Do you understand your comp plan? Most people never bother, figuring if they have a great product lots of people will join them and they’ll make money. After all the company is always parading out the top producers to prove that just anyone can get rich there. Even if they do read and comprehend (that’s often the hard part) the comp plan it’s often an after thought after they’ve fallen in love with the product or products, have joined the company and are out recruiting new distributors. Would you approach any other job this way? I don’t think so. Yet people rarely (and I was certainly no exception) have any clue what they’re getting into money wise when joining an MLM company. One of life’s great mysteries.

All Comp Plans are Not Created Equal (that’s an understatement)

Suppose you were looking at two companies, both with good products. In fact lets say both had fabulous and

mlm comp plans

All comp plans are not equal!

amazing products. You join one and your friend joins the other one. He or she wasn’t a really good friend otherwise obviously they would have joined you, or maybe they were just better at doing their homework.

Both of you have success, sponsoring people into your business. Then one day you compare checks. Your friend has a little over 400 people in her downline and is all excited about making $10,000 a month. Your organization is a lot bigger and you are just scraping by. This discrepancy eats at you, keeps you up at night as you toss and turn wondering how your friend could be such a success, and you could be such a failure. All the while you are kicking yourself for not joining her company in the first place.

You go online and pull up your company’s comp plan which until now you have only been vaguely familiar with. You learn that if you consistently produce volume at the first executive or pin level you can expect to make $8,000 a month. You work the numbers and learn that to be consistently at that pin level you need a downline with 1600 active members. Realistically you know that there are always some drop outs, so with less than 100% retention you figure you need closer to 2000 people….and still you are making less than your friend.

While this story sounds extreme, it is based on real people and real companies. When you are researching network marketing companies one of the best ways to compare them is to ask is how big each organization needs to be to make the kind of money you want to have every month. Some companies won’t have this information readily available, and most of the people upline to you won’t have a clue, even if they are a top earner. Most people have never considered this question.

But bottom line not all network marketing companies are the same and no matter what they tell you about their comp plan, it either pays well or it doesn’t. Asking how big a downline you need to earn $10,000, $5,000 or $1,000 per month is a good way to compare companies. Why work hard to sponsor a couple of thousand people if you can earn the same or more with just a few hundred? Believe me, those companies are out there and they also have great products.

If a company’s comp plan doesn’t pay well you can’t blame yourself for your lack of success. You can however blame yourself for not doing your research up front…like your friend did (or maybe they were just lucky). Don’t be too hard on yourself, though. Hardly anyone asks these kinds of questions. Maybe that’s why 95% of people who join network marketing companies fail.

You Don’t Need to Max Out Your Credit Cards and Refinance your House to be a Successmlm success

Here’s a story maybe you can relate to. It’s about a couple from Canada who traveled thousands of miles and even walked on fire seekingt the inner secrets to network marketing success. As the story goes, their feet got warmer, but their check stayed cold.

They worked five long years in what they described as a “sponsor monster” money-swap company with a pay plan so poor they ended up re-mortgaging their house, maxing out their credit cards and developing a seriously bad case of the “What’s Wrong With Me?”. Sound familiar? Have you been there? I sure have. I never refinanced my house to keep me in a network marketing company, but I did overload a few credit cards and despite my sacrifice, I never made much money, leaving the company broker than when I started there. And yes they all had fabulous products, and that ‘s never enough.

Eventually the Canadian couple found a solution, a track to run on that worked and today they have a thriving business. You can do the same (I did)….and walking on hot coals is not required.

Click here to read their amazing story.


How Does Your Company’s Comp Plan Stack Up?

How does your company’s comp plan stack up? More information about how to evaluate an MLM opportunity is available in Chapter 9 of the free ebook “Success in 10 Steps.” Click here to download a copy. You’ll enjoy the other chapters too.  Or visit the 5 Pillars page on this site.



PS…what do you look for in an MLM company?  Leave a comment below.

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